A defined-benefit (DB) pension scheme is an occupational pension plan where the retirement benefits are predetermined by a specific formula, typically incorporating years of service and salary levels. The pension is funded accordingly, and accounting for pension costs presents specific challenges governed by Section 28 of the Financial Reporting Standard in the UK and IAS 19.
An occupational pension scheme where the retirement benefits are calculated based on the employee's final salary prior to retirement. It is a type of defined-benefit pension scheme.
